Granite Construction Inc., Watsonville, Calif., is reducing its workforce by 227 employees, or approximately 13% of its salaried workforce. The layoffs, announced on Oct. 25, are expected to cut the company’s cost structure by about $20 million to $24 million annually. Granite will record a pre-tax charge in the fourth quarter of approximately $10 million to $12 million associated with severance and benefits-related costs. Granite also is working to identify “assets and investments that are not meeting profit and cash-flow expectations and are not projected to provide acceptable returns in the foreseeable future.” The company intends to close or divest them. “[These steps] are an important part of our plan to be more competitive, restore long-term profitable growth and create value for our shareholders,” says CEO James H. Roberts.
Granite Cuts Workforce To Reduce Costs
October 27, 2010